Getting paid on time is more than an operational detail—it can shape the stability of any business in Colombia. While Net 30 payment terms in Colombia are widely referenced, delays of up to 60 days beyond agreed terms are common, putting significant pressure on cash flow for many Colombian businesses.

According to a 2024 industry report, the average Days Sales Outstanding (DSO) for Colombian companies is now 61 days, with SMEs facing even longer collection cycles (Colombian Federation of Accountants, 2024). Understanding how payment terms work—and what’s changing—can help your business stay competitive and compliant.

What Do Net 30, Net 60, and Net 90 Mean in Colombia?

Think of Net 30, Net 60, and Net 90 payment terms Colombia as the agreed number of days a buyer has to pay after being invoiced. While these terms are standard in trade credit agreements, in practice, payment periods can range from 30 to 150 days depending on sector and negotiation. For instance, manufacturing contracts may average 90 days, while services tend to be closer to 45 days (PwC Colombia, 2023).

Because Colombian business culture values personal relationships and trust, payment terms are often shaped by the strength of the business relationship and prior experience.

These terms matter because they affect when you’ll actually see cash in your account. Invoicing practices also differ by industry, so understanding the specifics can help you avoid misunderstandings.

For practical guidance on invoicing, see our guide to invoicing international clients from Colombia.

How Colombia’s Fair Payments Law Shapes Payment Terms

Colombia’s Fair Payments Law Colombia (Law 2024 of 2020) and Decree 1733 set a maximum payment term of 45 days for transactions involving micro, small, and medium-sized enterprises (MSMEs). This law was introduced to foster fair trade practices, improve liquidity, and reduce chronic payment delays. The legislation responded to longstanding supplier frustrations with payment delays and sought to rebalance negotiating power between larger companies and MSMEs.

As the Ministry of Commerce stated in 2024, “We encourage businesses to adopt payment terms that foster fair trade practices and support economic stability” (Ministry of Commerce, 2024).

• Key provisions: 45-day maximum for MSMEs, scope defined by company size, exclusions for some transactions/sectors.

• Impact: Businesses across Colombia have had to review and update their payment policies to comply, shifting the market closer to global best practices.

Understanding and following these regulations is crucial for maintaining strong business relationships and avoiding compliance pitfalls.

For a deeper dive, see our Colombian Cross-Border Payment Compliance Guide.

The Realities of Payment Delays and DSO in Colombian Business

Even with clear contracts and legal standards, payment delays persist. The average DSO for Colombian SMEs is now 68 days, compared to 54 days for large enterprises (Colombian Federation of Accountants, 2024).

In other words, invoices are often paid 20–30 days past the agreed term, especially in sectors like construction and manufacturing.

Chronic late payments can impact a company’s creditworthiness and, in some cases, threaten its long-term business continuity.

This reality puts a strain on suppliers’ cash flows and can slow down growth for businesses of all sizes.

For more on tackling late payments, read our article on modern solutions for Colombian exporters.

Choosing the Right Payment Term: Net 30 vs. Net 60 vs. Net 90

Understanding the tradeoffs of each payment term is key to protecting your business. In Colombia, negotiation on payment terms is common, with sectors like construction and manufacturing favoring longer terms, while services often push for quicker payment cycles.

Here’s how they compare:

Luis Herrera, Financial Analyst at Bancolombia, cautions: “Businesses must assess their liquidity before offering Net 90 terms, as prolonged payment periods can strain cash reserves.”

Longer payment terms may help win large clients, but increase the risk of late payments or defaults—especially for smaller suppliers.

For guidance on negotiating the best terms, see our guide to negotiating payment terms with international clients.

Case Studies: Payment Terms in Action Across Colombian Sectors

Payment terms are not one-size-fits-all. Here’s how some Colombian businesses have managed real-world challenges:

• Textiles Bogotá S.A. adopted Net 30 terms with early payment discounts, achieving a 15% improvement in cash flow (Company financial reports, 2023).

• AgroExport Colombia Ltda. used Net 60 for European exports and bridged the gap with a line of credit, maintaining stable exports without liquidity issues (El Tiempo, 2024).

• Construcciones Andinas S.A. faced cash flow constraints from Net 90 terms in government contracts and negotiated progress payments to regain financial stability (Portafolio, 2023).

• Innovatech Colombia responded to Net 60 requests by shifting to subscription-based monthly billing, achieving steadier cash flow (Dinero, 2024).

Some suppliers mitigate these risks through trade credit insurance, which helps protect against customer non-payment.

For more on how batch/recurring payments can streamline your business, see Automating Bulk Payouts in Colombia With Mural Pay’s API.

Key Risks, Compliance, and Best Practices for Payment Terms

While compliance and strong contracts help, businesses must remain vigilant. Main risks include cash flow disruption, non-compliance penalties, and strained supplier-client relationships.

Implementing electronic invoicing is now required in Colombia, helping build trust and transparency that supports faster payment collection and reduces disputes.

Focus on:

• Clear contracts and defined payment terms

• Regular monitoring of payment cycles

• Adoption of electronic invoicing for efficiency and compliance

For more on integrating digital invoicing, visit our Stablecoin-to-Fiat API Integration best practices.

Expert Insights: Navigating Payment Terms in Colombian Business

As ACOPI advises, “SMEs should negotiate payment terms that align with their cash flow cycles to maintain financial health” (ACOPI Annual Report, 2024).

Experts recommend that businesses regularly review and adapt their payment policies, as changing regulations and shifting norms demand ongoing attention.

For further expert advice on credit risk assessment frameworks and fintech innovation, see API-First Payments in Colombia: What Every Fintech Needs to Know.

Modern Solutions: How Mural Pay Supports Efficient Payment Terms

Mural Pay provides stablecoin payments infrastructure that helps Colombian businesses get paid faster and with less risk. With features like batch payments, automated compliance, and virtual accounts, Mural Pay clients have reported up to a 70% reduction in payout and reconciliation time (Mural Pay, 2024).

The platform’s focus on instant settlement, low fees, and regulatory alignment makes it a strong choice for businesses seeking a modern payment solution.

For more information on making your payments more efficient, explore our platform or request a demo.

Conclusion: Payment Terms as a Strategic Advantage in Colombia

Payment terms are more than boilerplate—they can shape your company’s financial future. With new regulations and shifting business norms, proactive management of Colombian payment term negotiation and business invoicing practices can give you an edge in Colombia’s business environment.

For smart guidance on compliance, see our International Payment Regulations Guide.

References

• Colombian Federation of Accountants. (2024). Informe sobre las condiciones de pago en Colombia. https://www.federacioncontadores.org.co/informes/dso-colombia-2024

• PwC Colombia. (2023). Industry Insights: Payment Terms by Sector. https://www.pwc.com.co/sectores/pagos-industrias-2023

• Ministry of Commerce, Industry, and Tourism. (2024). Official Statement on Fair Payments Law. https://www.mincit.gov.co/comunicados/ley-pagos-justos-2024

• ACOPI. (2024). Annual Report: SME Payment Practices. https://www.acopi.org.co/informes/anual-2024

• El Tiempo. (2024). Cómo las empresas exportadoras manejan los plazos de pago. https://www.eltiempo.com/economia/empresas/pagos-exportadores-colombia-2024

• Portafolio. (2023). Sector Construcción: retos de liquidez y plazos de pago. https://www.portafolio.co/negocios/construccion-plazos-2023